This biotech has rocketed since March, so our chartist reveals what is needed to drive further gains.
Avacta Group Plc (LSE:AVCT)
Even just a rumour that a biotech company is getting involved in anything Covid-19 related has ensured many share prices receive swift enhancements. With the chances of Formula 1 races being held behind closed doors at Silverstone, will 'rapid tests' appear?
Avacta (LSE:AVCT), is one of the companies working in the test field, developing a point-of-care rapid test designed to screen large populations to diagnose coronavirus infection.
It is quite frustrating - we prepped a report on AVCT last month, choosing not to publish it thanks to the growth potential sounding absurd.
Needless to say, it achieved our initial target of 139p and exceeded it, so we are revamping our expectations.
Presently trading at around 146p, movement exceeding 151p calculates with the potential of further movement to 180p.
If exceeded, our secondary works out at 226p. If triggered, the visuals indicate the share needs fail below 117p presently to cancel the growth potentials.
We should also point out our enthusiasm is slightly curbed at present, thanks to the price not yet managing to close above the level of 2015's 151p.
If we apply conventional price thinking, with closure above such a point longer-term growth shall prove difficult to restrict.
As an aside, visiting a UK hospital today (Tuesday) proved sobering, required to wash hands, wear a face mask, declare a lack of certain medical symptoms, and given concise instructions on how to move around the building.
The advent of a quick test will prove game changing in letting life return to normal, while we await a cure.
Source: Trends and Targets. Past performance is not a guide to future performance.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of interactive investor.
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